How much should you spend on marketing your property?
If you’re selling your property, the marketing campaign is the first opportunity to ensure your home stands out from the crowd. But how much marketing is required?
Will a quick social media campaign be enough? Is a video warranted? And what about newspaper editorials and ads? Let’s look at how much you should spend when it comes to marketing your property for sale.
Types of marketing
When it comes to marketing, there are different types to consider. Typically, the minimum marketing you would expect to see for a property is:
Professional photography – Which showcases the home to best effect
A floorplan – To give an indication of the property’s layout and size
A listing on a real estate portal – Listings on portals such as realestate.com.au and Domain are considered essential, as this is where most property buyers now start their house hunt.
A listing on the real estate agency’s website – Like the real estate portals, a listing on your agency’s website is a must-have.
A signage board – Signage boards catch the interest of people passing your property.
Property brochures to distribute at the open home – These give people something to take away and peruse after seeing the property in person.
Beyond that, your agent may also suggest further options, such as:
A social media campaign – Affordable and effective, social media campaigns can be targeted so your property appears in front of the demographic that is likely to be your ideal buyer.
Print advertising in your local paper – Print advertising in local, state and national papers still plays an important role in real estate, particularly when it comes to premium properties.
An advertisement in a property magazine – Property magazines tend to be most relevant to premium properties, especially if that home is likely to appeal to interstate or overseas buyers.
A video of the property – Video offers an incredibly effective way to show people through a home without them physically being there. It’s now considered a standard addition to the property market portfolio.
Staging – Staging is a great way to create a vibe in a property, particularly if it’s empty or the existing furniture is a little dated.
An event-style open home – For exceptional properties in a high price bracket your agent may suggest an event-style open home. This is designed to create interest and a ‘buzz’ amongst potential buyers.
Typical cost
Marketing costs can vary hugely from one property to another, depending on a range of factors. But as a general rule, you should expect to pay between 0.5 per cent and 1 per cent of your property’s value on marketing.
For a $500,000 property, that means you might pay anywhere between $2500 and $5000 to market your property, while a $2 million property might cost anywhere between $10,000 and $20,000.
Factors to consider
The type of property, its location, and its value are among the factors that impact the type of marketing you should consider and also how much you should spend.
For example, it would be overkill to fork out for magazine advertising or premium portal ads for a home in a lower price bracket that is best suited to first home buyers.
Importantly, these types of properties are also often in demand, so people are actively seeking them out.
But if your property is a premium waterfront property in Sydney, the buyer pool is likely to be smaller. That buyer pool might also be slightly further afield, making it a worthwhile expense to advertise in a national newspaper liftout or magazine.
A property of this calibre could also benefit from staging, and a premium video.
Bespoke marketing campaigns
Marketing a property is never a one size fits all affair, and your agent will suggest the strategies that they believe will work best for you and your property.
In fact, they should walk you through their proposed marketing campaign, including potential costs, when you first sit down and discuss the listing.
